UK Government outlines how £3.3bn funding package is to be spent in Northern Ireland

The UK Government has confirmed details of a £3.3billion funding package to support the restored power sharing administration in Northern Ireland.

The government described it as a “significant, fair and generous” package. It has, however, said the Executive must raise £113m.

The government said the plan included a requirement for the Executive to deliver a balanced budget for 2024/25 that includes a minimum of £113 million raised through locally generated income.

Ministers in Belfast will also be expected to publish a “comprehensive and costed” long-term strategic infrastructure plan that sets out priority areas for action and how they will support prosperity and growth.

Details on the financial package outlined in the letter to Stormont include:

• Reform of the Barnett formula for allocating Treasury funds to Northern Ireland, with funding rates for the region set at 24% above comparative rates in England. The Government said this would reflect the “different levels of need in Northern Ireland”.

• A £1billion fund to stabilise Stormont’s public finances.

• £34m to tackle spiralling hospital waiting lists.

• Flexibility to allow deferment of repayment of a multimillion-pound overspend of Treasury funding during the power-sharing impasse.

• Funds to help meet public sector pay demands in the current financial year.

• Boost the Executive’s spending powers to transform public services by repurposing in excess of £700m of existing and new UK Government funds.

• Increase the Executive’s annual capital borrowing limit by 10% in 2024/25, a limit which will then increase annually in line with inflation.

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